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Did everybody get a 1099-K from PayPal?

by AFI
10 replies
I was very surprised to see that I made $70,000 with PayPal last year and now owe taxes on it.

No biggie, I can pay the back taxes but when did they start this? This is the first year I've ever gotten anything from PayPal regarding the IRS. Am I out of the loop?
#1099k #paypal
  • Profile picture of the author Robert Michael
    They issue 1099's when you receive $20,000 in payments AND have 200 payments received.

    So you could get paid by 199 people and make $30,000, but they wouldnt report it.

    You have to meet BOTH requirements. Which apparently you did. So congrats!
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  • Profile picture of the author tpw
    This is the first year they have done this.

    The IRS pushed online payment processors into negotiations to make this happen, and now it is law, starting in calendar year 2011.

    I thought my wife would kill me when she saw how much I would owe in taxes...

    But when all was said and done, she couldn't complain when she realized how much I had actually made last year.

    My taxes are done and submitted for 2011... Thank God...
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    • Profile picture of the author AFI
      Originally Posted by tpw View Post

      This is the first year they have done this.

      The IRS pushed online payment processors into negotiations to make this happen, and now it is law, starting in calendar year 2011.

      I thought my wife would kill me when she saw how much I would owe in taxes...

      But when all was said and done, she couldn't complain when she realized how much I had actually made last year.

      My taxes are done and submitted for 2011... Thank God...
      Lucky you! My taxes are going to be a pain in the butt to do this year because while I made $70K I also paid out a bunch of overhead, so it's going to be a nightmare to figure all of that out.
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  • Profile picture of the author REHughes
    Originally Posted by AFI View Post

    I was very surprised to see that I made $70,000 with PayPal last year and now owe taxes on it.
    Jennifer,
    Just curious for my own sake (later), not yet. But you said you were SURPRISED that you made this much?

    That seems like a very significant amount of income - do you not use an accountant or anything like that?
    I simply ask because it is obvious that you are not just making a hobby of it but actually a business, and I would think one would have all of those bases covered?

    Again, I am just curious as I am nowhere near that level, but still learning as I go what NOT to do wrong!

    Great job, by the way!

    Robert
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    • Profile picture of the author Troy_Phillips
      Robert .. what part of north Ga you from?

      Troy



      Originally Posted by REHughes View Post

      Jennifer,
      Just curious for my own sake (later), not yet. But you said you were SURPRISED that you made this much?

      That seems like a very significant amount of income - do you not use an accountant or anything like that?
      I simply ask because it is obvious that you are not just making a hobby of it but actually a business, and I would think one would have all of those bases covered?

      Again, I am just curious as I am nowhere near that level, but still learning as I go what NOT to do wrong!

      Great job, by the way!

      Robert
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      • Profile picture of the author REHughes
        Originally Posted by Troy_Phillips View Post

        Robert .. what part of north Ga you from?

        Troy
        Just North of Rome about 20 miles.

        Robert
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  • Profile picture of the author AceOfShirts
    Nope, but I hope I make enough money to get one next year. I better get on the ball though. January and February have been pretty slow. They usually are though, it's not t-shirt weather everywhere.

    Did your form mention how much they charged you in fees for the year? The fees would be deductible but I wonder if you have to figure them out for yourself.

    In theory, if you paid them more than $600 in fees you might have to send them a 1099.
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  • Profile picture of the author onegoodman
    PayPal send 1099, only for rich people like you

    poor guys like me didn't get one this year

    No complaints, but I am hoping by the end of 2012 I get big 1099 (for profits not sales)

    Congrats on your earning, wish you luck with a bigger 1099 next year (I am not wishing you more taxes only wishing you more profit )
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  • Profile picture of the author marketingva
    Hi all,

    I'm confused. If you made any money and got paid through Paypal then you need to report it to the IRS even if you didn't get a 1099. Any business income, reported by the payer or not, needs to be declared as income and you have to pay taxes on it. Getting a 1099 from Paypal this year should change nothing for you. You should have been declaring that income all along.

    Bonnie
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    • Profile picture of the author onegoodman
      You should report all income.

      However, since this year any business make 200 and $20,000 in a calendar year receive 1099 and the info send to IRS as well.

      Originally Posted by marketingva View Post

      Hi all,

      I'm confused. If you made any money and got paid through Paypal then you need to report it to the IRS even if you didn't get a 1099. Any business income, reported by the payer or not, needs to be declared as income and you have to pay taxes on it. Getting a 1099 from Paypal this year should change nothing for you. You should have been declaring that income all along.

      Bonnie
      The writer of this post is just wondering since when PayPal doing this job and if everyone receive one or case by case kind of
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